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CHAPTER 1

INTRODUCTION

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1.1 INTRODUCTION TO THE NET BANKING

With cyber cafes and kiosks springing up in different cities access to the Net is going to be easy. Net

banking (also referred as e banking) is the latest in this series of technological wonders in the recent

past involving use of Internet for delivery of banking products & services. Even the Morgan Stanley

Dean Witter Internet research emphasized that Web is more important for retail financial services

than for many other industries.

Internet banking is changing the banking industry and is having the major effects on banking

relationships. Banking is now no longer confined to the branches were one has to approach the

branch in person, to withdraw cash or deposit a cheque or request a statement of accounts. In true

Internet banking, any inquiry or transaction is processed online without any reference to the branch

(anywhere banking) at any time. Providing Internet banking is increasingly becoming a "need to

have" than a "nice to have" service. The net banking, thus, now is more of a norm rather than an

exception in many developed countries due to the fact that it is the cheapest way of providing

banking services.

1.2 MEANING OF NET BANKING

Net banking is a concept which enables everyone to conduct business with a bank from the comfort

of home or office.

Net banking means application of electronic technology towards transfer of funds through an

electronic terminal, computer or magnetic tape to conduct various transactions like cash receipts,

payments, transfer of funds, etc. It is often known as banking on net or e banking.

1.3 DEVELOPMENT OF NET BANKING IN INDIA

The financial reforms that were initiated in the early 1990s and the globalization and liberalization

measures brought in a completely new operating environment to the banks. The bankers are nowoffering innovative and attractive technology-based services and products such as Anywhere

Anytime Banking, Tele-Banking, Internet Banking, Web Banking, Net Banking, Mobile

Banking, etc. to their customers to cope with the competition. The process started in the early 1980s

when Reserve Bank of India (RBI) set up two committees in quick succession to accelerate the pace

of automation of operations in the banking sector. A high-level committee was formed under the

chairmanship of Dr. C. Rangarajan, then Governor of RBI, to draw up a phased plan for

computerization and mechanisation in the banking industry over a five-year time frame of 1985

1989. The focus by this time was on customer service and two models of branch automation were

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developed and implemented. Having gained experience in the earlier mode of computerization, the

second Rangarajan committee constituted in 1988 drew up a detailed perspective plan for

computerization of banks and for extension of automation to other areas such as funds transfer, e-

mail, BANKNET, SWIFT, ATMs, net banking, etc. The Government of India enacted the

Information Technology Act, 2000 (generally known as IT Act, 2000), with effect from 17 October

2000 to provide legal recognition to electronic transactions and other means of electronic commerce.

RBI had set up a Working Group on net banking to examine different aspects of net banking. The

Group had focused on three major areas of net banking such as

(1) Technology and security issues,

(2) Legal issues and

(3) Regulatory and supervisory issues.

RBI had accepted the recommendations of the Working Group, and accordingly issued guidelines

on internet banking in India for implementation by banks. The Working Group has also issued a

report on net banking covering different aspects of net banking.

Internet banking in India is currently at a nascent stage. While there are scores of companies

specializing in developing internet banking software, security software and website designing and

maintenance, there are few online financial service providers. ICICI bank is the first one to have

introduced net banking for a limited range of services such as access to account information,

correspondence and, recently, funds transfer between its branches. ICICI is also getting into e-

trading, thus offering a broader range of integrated services to the customer.

Several finance portals for provision of non-banking financial services, e-trading and e-broking have

come up. Commercial applications such as Electronic Bill Presentment (EBP) and Procurement

systems may not be introduced in India immediately, but are likely to have a greater impact than the

retail applications. The corporate sector is adequately computerized and has already recognized theimportant role of e-commerce in future. Increasingly, companies are setting up websites even where

there are no immediate tangible benefits to them from doing so.

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1.4 NET BANKING IN INDIA RBI GUIDELINES

In India, internet banking or net banking is in rudimentary stage. In order to promote safety and

soundness of internet banking activities, the RBI constituted a Working Group on Internet Banking.

The Group issued guidelines in June 2001. The Group divided the internet banking products in India

into 3 types based on the levels of access granted. They are

Information Only System

Electronic Information Transfer System

Fully Electronic Transactional System.

1.5 ADVANTAGES AND DISADVANTAGES OF NET BANKING

Internet Bankingalso has its advantages and disadvantages. Below are mentioned the most popular

advantages of using Internet Banking along with some unavoidable disadvantages.

The advantages include

Convenience - online banking sites never close; they're available 24 hours a day, seven days a

week, and they're only a mouse click away;

Portability you now have access to money whenever there is an emergency, whether or not

you are in the country;

Transaction speed - online bank sites generally execute and confirm transactions at the same

rate or quicker than, ATM processing speeds;

Effectiveness they offer sophisticated tools, including account aggregation, stock quotes

and rate alerts to help you manage all of your assets more effectively.

Reduction in workload - No more standing in long lines at the bank, eliminating endless

paper based bank statements.

The disadvantages include

Lack of Computerization - which relates to virtual banks, revolves around the lack of

ATMs;

Start-up may take time - In order to register for your bank's online program, you will

probably have to provide ID and sign a form at a bank branch which can be time consuming;

Learning curve - Banking sites can be difficult to navigate at first;

Distrust of the User - the possibility of frauds, making errors etc.

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Problem of Security Various sites are not properly looked at to ensure whether customers

money is safe in cyber world or not.

1.6 TRADITIONAL BANKING VS NET BANKING

Net banking or internet banking works much like traditional banking. The primary difference is thatin net banking account and information is accessed, payments are made and statements reconciled

using computer rather than paper or the phone to complete transactions. Instead of going down to

local branch office when one bank online he/she can accomplish multiple tasks at once with the click

of a button.

Online banking is rapidly becoming more and more popular as consumers recognize the advantages

online banking has to offer. For one most banks charge fewer fees if you take advantage of their

onlinebanking services. You can also stop receiving paper statements if you like in many cases and

conduct 95% of your business over the Web when you take advantage of Internet banking.

What to Internet Banks do? The same things traditional banks do. They hold onto our money and

lend it out to others respectively. The manage loans and help us keep track of ourfinances. Chances

are if you own abank account at a traditional bank they offer some type of Internet banking or online

services. The next time you stop into your branch office you should ask them about online banking.

You may find once you start you have no desire to go back to traditional banking.

For those that have a hard time keeping track of paper statements, Internet banking is a life saver.

Internet banking is also advantageous for frequent travelers that need to keep a close eye on their

finances from abroad.

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CHAPTER 2

RESEARCH DESIGN

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NEED, SCOPE AND OBJECTIVES OF THE STUDY

2.1 NEED OF THE STUDY

After conducting a review of researches done by various professionals a gap have been identified.

The researchers had studied the aspects of internet banking, its introduction, its development,

adoption by the customers, customer satisfaction about this service, its success and security related

issues. But a very few researchers had studied the net banking service with respect to the HDFC

Bank. This gap had been identified and it had led to the present research being undertaken.

2.2 SCOPE OF THE STUDY

This study deals with the factors which deal with theCustomer satisfaction towards the Internetbanking Services. This study also gives insights to the necessary actions to be taken by the HDFC

net banking service.

2.3 OBJECTIVES OF THE STUDY

The current study was undertaken to achieve the following stated objectives:

1. To study the awareness level of customers who are using internet banking services offered by

HDFC Bank.

2. To identify the factors influencing customers to use internet banking services offered by HDFC

Bank.

3. To evaluate customer satisfaction of the customers using HDFC internet banking services.

4. To study the flexibility of the internet banking services offered by HDFC Bank.

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REVIEW OF LITERATURE

2.4 Literature Review

A number of researches have been conducted on net banking and its adoption, development and its

perils. Due to shortage of time and resources, a review of all the past researches done could not be

mentioned in this research project. So, a snapshot of some of the reviews has been presented.

Nathet.al (2001) in their study found that in every industry, E-commerce is revolutionizing the way

business is conducted. New business models are replacing outdated ones and organizations are

rethinking business process designs and customer relationship management strategies. Banks are no

exception to this transformation. This study examines bankers' views on providing banking services

to customers using the web. Specifically, it addresses issues such as the strategic need for Internet

banking, its effect on customer-bank relationships, and customers' experiences in Internet banking.

Data collected from 75 banks show that most banks do not yet offer full-fledged Internet banking.

However, most have plans to do so. Furthermore, bankers see Internet banking as a strategic

opportunity that can reduce transaction costs, enhance customer service, increase the customer base

and improve cross-selling opportunities. Also, Internet banking is perceived more favorably by

banks that offer it compared to those that do not.

Corrocher(2002) in his study examined the drivers of the adoption of the Internet banking, in order

to understand its role with respect to the traditional banking activity and to offer a comprehensive

picture of the diffusion of such a technology within the sector. In doing so, it analyses the role of

firm-specific and non firm-specific (technology, market, environment) characteristics in influencing

the decision to adopt the new technological platforms to perform on-line banking transactions within

the retail segment of the financial sector. The main purpose of this paper is to investigate the

relationship between the Internet banking and the traditional banking activity, in order to understand

if these two systems of financial services delivery are perceived as substitutes or complements by thebanks.

Leary (2002) in his study examined how Internet or electronic banking is slowly but surely reviving

itself after numerous attempts by various financial institutions and financial intermediaries in the

1970 and 1980s. The standardization in technologies and the public's familiarity with the use of

personal computers and the Internet have made the Internet bank or Internet banking site easier,

cheaper and more cost effective than ever before. This paper discusses the coming of age of Internet

banking, the opportunity for Internet banking and some of the obstacles and procedures that must be

followed in order to develop a sound Internet banking presence.

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Bradley & Stewart (2003) conducted a research in which they studied the factors driving the

adoption of internet banking. The financial services environment has been subject to changes on

many fronts. Technological change and the advent of the Internet are among the most dramatic and

challenging areas of change for the sector. This paper looks at retail banking and its adoption of

online banking, in particular the factors driving and inhibiting adoption by banks. An international

Delphi study confirms the high level of importance of the Internet for retail banking. By 2011, it is

expected that bank adoption of the Internet will be near universal. The key factors that are driving

banks to adopt online banking are the adoption by other banks, competitive forces, consumer

demand and the availability of technology. Working against adoption are banks' perceptions that the

Internet does not offer enhanced ability to deal with customers as well as bank resistance to change,

their existing legacy systems and the resources required to adopt.

Singh & Malhotra (2004) in their study found that the tremendous advances in technology and the

aggressive infusion of information technology had brought in a paradigm shift in banking operations.

The purpose of this paper is to help fill significant gaps in knowledge about the Internet banking

landscape in India. The paper presents data, drawn from a survey of commercial banks websites, on

the number of commercial banks that offer Internet banking and on the products and services they

offer. It investigates the profile of commercial banks that offer Internet banking, using univariate

statistical analysis, relative to other commercial banks with respect to profitability, cost efficiency,

and other characteristics. By the end of first quarter, 2004, differences between Internet and non-

Internet banks had begun to emerge in funding, in sources of income and expenditures and in

measures of performance. It was also found that the profitability and offering of Internet banking

does not have any significant correlation.

Kuisma et.al (2006) conducted a research to identify the reasons for consumer resistance to Internet

banking. The special interest is to explore resistance among those bank customers who already have

valid contracts for Internet banking but prefer to pay their bills via ATM. The objective is to identifythose characteristics generating resistance to Internet banking and their connections to values of

individuals. In order to achieve the objective, 30 Finnish bank customers were interviewed in-depth

using the means-end approach and the laddering interviewing technique. The findings indicate both

functional and psychological barriers arising from service-, channel-, consumer- and

communication-related means-end chains inhibiting Internet banking adoption. The contribution of

the paper lies in achieving a more profound understanding of consumer resistance to Internet

banking, and further, in offering suggestions and practical advice for service providers' decision-

making.

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The perusal of review of literature revealed that the internet banking had been studied in relation to

various aspects like its adoption, growth, development and expectations of the customers. But no

study has been conducted in relation to the Net Banking service provided by HDFC Bank.

Laukkanen & Tommi (2007) in their research aimed to compare customer perceived value and

value creation between internet and mobile bill paying service. A qualitative in-depth interviewing

design was applied in order to ascertain the factors that create value perceptions in fund transfer

service via personal computer and mobile phone. The findings suggest that efficiency, convenience

and safety are salient in determining the differences in customer value perceptions between internet

and mobile banking. The findings of the qualitative study, being more depth than wide in nature,

deserve to be quantitatively measured in future studies in order to provide more generalized results.

The paper provides enhanced information for business managers about both positive and negative

customer value perceptions in internet and mobile banking. By understanding how and what kind of

value different service channels provide for customers service providers are better enabled to create

actions to enhance internet and mobile banking adoption. The contribution of the paper lies in

achieving a more profound understanding on consumer value perceptions to internet and mobile

banking. It expands the literature on electronic and mobile commerce and on electronic banking

especially.

Nandan et.al (2008) in his paper discusses the concept of Internet Banking, satisfaction of Internet

bank customers, non-customers and issues of major concern in Internet banking. The state of Internet

banking in India has been explored using various concepts like E-banking continuum, and gap

analysis related to the various services and the security features offered. In order to have a clear and

focussed insight about the perceptions of users (and non-users) about Internet banking a survey was

conducted. The findings of the survey provide valuable insights into concern for security, reasons for

lower penetration, and likeliness of adoption, which have been used to make useful

recommendations.

Mishra & Kiranmai (2009) in their study found that information technology is considered as the

key driver for the changes taking place around the world. According to Heikki, the transformation

from the traditional banking to e-banking has been a 'leap' change. The evolution of e-banking

started from the use of Automatic Teller Machines (ATMs) and telephone banking (tele-banking),

direct bill payment, electronic fund transfer and the revolutionary online banking. The future of

electronic banking would be more interactive i.e., TV banking. Finland is the first country in the

world to have taken a lead in e-banking. In India, ICICI Bank initiated e-banking services during

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1997 under the brand name 'Infinity'. It has been forecasted that among all categories, online banking

is the future of electronic financial transactions. The rise in e-commerce and internet in enhancing

online security transformation and sensitive information has been the core reason for the penetration

of online banking in everyday life. The shift towards the involvement of the customers in the

financial service with the help of technology, especially internet, has helped in reducing costs of

financial institutions as well as clients/customers who use the service at anytime and from virtually

anywhere with access to an internet connection.

Uppal (2009) in his study found that in the post-LPG (Liberalization, Privatization and

Globalization) era and Information Technology (IT) era, transformation in Indian banks is taking

place with different parameters and the contours of banking services are dynamically altering the

face of banking, as banks are stepping towards e-banking from traditional banking. On the basis of

five-point likert-type scale, this paper empirically analyzes the quality of e-banking services in the

changing environment. With different statistical tools such as weighted average method and ranking,

the paper concludes that most of the customers of e-banks are satisfied with the different e-channels

and their services, but the lack of awareness is a major obstacle in the spread of e-banking services.

The paper also suggests some measures to make e-banking services more effective in the future.

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RESEARCH METHODOLOGY

2.5 Research methodology

Research is a common parlance which refers to search for knowledge. It is a procedure of logical and

systematic application of the fundamentals of science to the general and overall questions of a study

and scientific technique, which provide precise tools, specific procedures, and technical rather

philosophical means for getting and ordering the data prior to their logical analysis and manipulating

different type of research designs is available depending upon the nature of research project,

availability of manpower and circumstances.

According to D.Slesinger and M. Stephenson research may be defined as the manipulation of

things, concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge,

whether that knowledge aids in the construction of theory or in the practice of an art. Thus it is

original contribution to the existing stock of knowledge of making for its advancement. In short, the

search of knowledge through objective and systematic method of finding solution to a problem is

research.

RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis of data in a manner

that aims to combine relevance to the research purpose with economy in procedure. In fact, the

research design is the conceptual structure within which research is conducted. This research was

descriptive in nature.

Descriptive research:

The research undertaken was a descriptive research as it was concerned with specific Predictions,

with narration of facts and characteristics concerning net banking service Provided by HDFC Bank.

SAMPLING DESIGN

The following factors have been decided within the scope of sample design:

Universe of study: Universe of the study means all the persons who are the customers of HDFC

Bank in the world.

Theoretical: It covered all the individuals who are the customers of HDFC Bank in the world.

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Accessible: It covered all the individuals who are the customers of HDFC Bank in India who are

within our reach. In this study accessible population was customers of HDFC Bank in India.

Sample Size: A sample of minimum respondents was selected from various areas of Hyderabad.

(Alwal, Dilsukhnagar, Kukatpally, Mehdipatnam, Secunderabad ) Respondents are evenly selected.

The survey was carried out on 300 respondents.

Sample Unit: In this project sampling unit consisted of the various individuals who had their bank

accounts with HDFC Bank.

Sampling Technique: Stratified Random sampling technique is used for the collection of primary

data.

Sampling Frame: It consisted of various sources from where information about the respondent is

extracted. Mainly personal links and employees of HDFC Bank. Data will be collected in Hyderabad

for convenience.

2.6 DATA COLLECTION, ANALYSIS AND LIMITATIONS OF THE STUDY

DATA COLLECTION

There were two types of data sources used in this research. These were

Secondary data

Secondary data is the data collected from already been use or published information like journals,

diaries, books, etc .In this research project, secondary source used were various journals, and

website of various online journals.

Primary data

Primary data is the data collected for the first time from the source and never have been used earlier.

The data can be collected through interviews, observations and questionnaires. In this project, an

appropriate questionnaire was designed which was filled by the customers of HDFC Bank to know

their opinions regarding the Net Banking service provided by HDFC Bank.

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DATA ANALYSIS

Tools of Presentation:

It means what all tools are used to present the data in a meaningful way so that it becomes easily

understandable. In this research tables and graphs were used for presenting the data.

Tools of Analysis

In this research the tools of analysis used were percentages. SPSS software were used to conduct chi-

sqare test to analyze the data collected.

Hypothesis:

H01: There is no significant association between customers satisfaction and the convenience, Quick

service and Maintenance provided by HDFC net banking.

H11: There is a significant association between customers satisfaction and the convenience, Quick

service and Maintenance provided by HDFC net banking.

H02: There is no significant association between customers satisfaction and safety, cost, user

friendly and transactions feasibility offered by HDFC net banking.

H12: There is a significant association between customers satisfaction and safety, cost, user friendly

and transactions feasibility offered by HDFC net banking.

H03: There is no significant association between the customer satisfaction and account login,

webpage understanding and IPIN alteration offered by HDFC net banking.

H13: There is a significant association between the customer satisfaction and account login, webpage

understanding and IPIN alteration offered by HDFC net banking.

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LIMITATIONS OF THE STUDY

The following were the limitations of the study:

1. Non representative sample: In this research project a sample survey was conducted.

A sample of 300 respondents was selected. So such sample size cannot be said to be

the true representative of the universe.

2. Shortage of time: The time period of study was very limited. It is very difficult to

have in detail study on project work due to limited time period. The period of 4 to 6

weeks is not enough for the proper study of the project.

3. Inadequate data: The data provided was not up to the mark due to which we faced

problems in our research.

4. Lack of scientific method: The lack of scientific training in methodology of

research was great impediment in our research program, which led to the delay of

research.

5. Biasness in the responses: The answers provided by the respondents suffer from

biasness.

6. Cost Factor: It was not possible to conduct extensive research due to paucity of

funds.

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CHAPTER 3

COMPANY

PROFILE

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INTRODUCTION

FORMATION OF THE COMPANY

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an

'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as

part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in

August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India.

HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

PROMOTER

HDFC is India's premier housing finance company and enjoys an impeccable track record in India as

well as in international markets. Since its inception in 1977, the Corporation has maintained a

consistent and healthy growth in its operations to remain the market leader in mortgages. Its

outstanding loan portfolio covers well over a million dwelling units. HDFC has developed

significant expertise in retail mortgage loans to different market segments and also has a large

corporate client base for its housing related credit facilities. With its experience in the financial

markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC

was ideally positioned to promote a bank in the Indian environment.

BUSINESS FOCUS

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer

franchises across distinct businesses so as to be the preferred provider of banking services for target

retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent

with the bank's risk appetite. The bank is committed to maintain the highest level of ethical

standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's

business philosophy is based on four core values Operational Excellence, Customer Focus, Product

Leadership and People.

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CAPITAL STRUCTURE

As on 31st March, 2009 the authorized share capital of HDFC Bank is Rs. 550 Crore. The paid-up

capital as on the said date is Rs. 425,38,41,090/- ( 42,53,84,109 equity shares of Rs 10/- each). The

HDFC Group holds 19.38% of the Bank's equity and about 17.70 % of the equity is held by the ADS

Depository (in respect of the bank's American Depository Shares (ADS) Issue). 27.69 % of the

equity is held by Foreign Institutional Investors (FIIs) and the Bank has about 5,48,774 shareholders.

The shares are listed on the Bombay Stock Exchange Limited and the National Stock Exchange of

India Limited. The Bank's American Depository Shares (ADS) are listed on the New York Stock

Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are

listed on Luxembourg Stock Exchange under ISIN No US40415F2002.

TIMES BANK AMALGAMATION

In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private

sector bank promoted by Bennett, Coleman & Co./Times Group) was merged with HDFC Bank Ltd.,

effective February 26, 2000. As per the scheme of amalgamation approved by the shareholders of

both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC

Bank for every 5.75 shares of Times Bank. The acquisition added significant value to HDFC Bank interms of increased branch network, expanded geographic reach, enhanced customer base, skilled

manpower and the opportunity to cross-sell and leverage alternative delivery channels.

DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 1229

branches spread over 444 cities across India. All branches are linked on an online real-time basis.

Customers in over 120 locations are also serviced through Telephone Banking. The Bank's

expansion plans take into account the need to have a presence in all major industrial and commercial

centers where its corporate customers are located as well as the need to build a strong retail customer

base for both deposits and loan products. Being a clearing/settlement bank to various leading stock

exchanges, the Bank has branches in the centers where the NSE/BSE has a strong and active member

base. The Bank also has a network of about over 2526 networked ATMs across these cities.

Moreover, HDFC Bank's ATM network can be accessed by all domestic and international

Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge

cardholders.

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BOARD OF DIRECTORS

The Composition of the Board of Directors of the Bank is governed by the Companies Act, 1956, the

Banking Regulation Act, 1949 and the listing requirements of the Indian Stock Exchanges where the

securities issued by the Bank are listed. The Board has a strength of ten (10) Directors as on March

31, 2011. All Directors other than Mr. Aditya Puri, Mr. Harish Engineer and Mr. Paresh Sukthankar

are non-executive directors. The Bank has six independent directors and four non-independent

directors. The Board consists of eminent persons with considerable professional expertise and

experience in banking, finance, agriculture, small scale industries and other related fields.

None of the Directors on the Board is a member of more than ten (10) Committees and Chairman of

more than five (5) Committees across all the companies in which he/she is a Director. All the

Directors have made necessary disclosures regarding Committee positions occupied by them in other

companies.

Mrs. Renu Karnad, Mr. Aditya Puri, Mr. Harish Engineer and Mr. Paresh Sukthankar are non-

independent Directors on the Board.

Mr. C. M. Vasudev, Mr. Ashim Samanta, Dr. Pandit Palande, Mr. Partho Datta, Mr. Bobby Parikh

and Mr. A. N. Roy are independent directors on the Board.

Mrs. Renu Karnad represents HDFC Limited on the Board of the Bank.

The Bank has not entered into any materially significant transactions during the year, which could

have a potential conflict of interest between the Bank and its promoters, directors, management

and/or their relatives, etc. other than the transactions entered into in the normal course of business.

The members of the Senior Management team have made disclosures to the Board confirming that

there are no material, financial and/or commercial transactions between them and the Bank which

could have potential conflict of interest with the Bank at large.

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TECHNOLOGY

HDFC Bank operates in a highly automated environment in terms of information technology and

communication systems. All the bank's branches have online connectivity, which enables the bank to

offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail

customers through the branch network and Automated Teller Machines (ATMs).

The Bank has made substantial efforts and investments in acquiring the best technology available

internationally, to build the infrastructure for a world class bank. The Bank's business is supported

by scalable and robust systems which ensure that our clients always get the finest services we offer.

The Bank has prioritized its engagement in technology and the internet as one of its key goals and

has already made significant progress in web-enabling its core businesses. In each of its businesses,

the Bank has succeeded in leveraging its market position, expertise and technology to create a

competitive advantage and build market share.

RATING

Credit rating

The Bank has its deposit programs rated by two rating agencies - Credit Analysis & Research

Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit programme has

been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments considered to be

"of the best quality, carrying negligible investment risk". CARE has also rated the bank's Certificate

of Deposit (CD) programme "PR 1+" which represents "superior capacity for repayment of short

term promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has

assigned the "tAAA ( ind )" rating to the Bank's deposit programme, with the outlook on the rating as

"stable". This rating indicates "highest credit quality" where "protection factors are very high".

The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE and Fitch

Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II Bonds rated by CARE

and CRISIL Ltd. CARE has assigned the rating of "CARE AAA" for the subordinated Tier II Bonds

while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the outlook on the

rating as "stable". CARE has also assigned "CARE AAA [Triple A]" for the Banks Perpetual bond

and Upper Tier II bond issues. CRISIL has assigned the rating "AAAStable" for the Bank's Perpetual

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Debt programme and Upper Tier II Bond issue. In each of the cases referred to above, the ratings

awarded were the highest assigned by the rating agency for those instruments.

Corporate governance rating

The bank was one of the first four companies, which subjected itself to a Corporate Governance and

Value Creation (GVC) rating by the rating agency, The Credit Rating Information Services of India

Limited (CRISIL). The rating provides an independent assessment of an entity's current performance

and an expectation on its "balanced value creation and corporate governance practices" in future. The

bank has been assigned a 'CRISIL GVC Level 1' rating which indicates that the bank's capability

with respect to wealth creation for all its stakeholders while adopting sound corporate governance

practices is the highest.

PRODUCT SCOPE

HDFC Bank offers a bunch of products and services to meet the every need of the people. The

company cares for both, individuals as well as corporate and small and medium enterprises. For

individuals, the company has a range accounts, investment, and pension scheme, different types of

loans and cards that assist the customers. The customers can choose the suitable one from a range of

products which will suit their life-stage and needs.

For organizations the company has a host of customized solutions that range from Funded services,

Non-funded services, Value addition services, Mutual fund etc. These affordable plans apart from

providing long term value to the employees help in enhancing goodwill of the company.

The products of the company are categorized into various sections which are as follows:

Accounts and deposits.

Loans.

Investments and Insurance.

Forex and payment services.

Cards.

Customer center.

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BUSINESS SEGMENTS

HDFC Bank offers a wide range of commercial and transactional banking services and treasury

products to wholesale andretail customers. The bank has three key business segments:

(i) Wholesale Banking Services

The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian

corporate to small & mid-sized corporate and agro-based businesses. For these customers, the Bank

provides a wide range of commercial and transactional banking services, including working capital

finance, trade services, transactional services, cash management, etc. The bank is also a leading

provider of structured solutions, which combine cash management services with vendor and

distributor finance for facilitating superior supply chain management for its corporate customers.

Based on its superior product delivery / service levels and strong customer orientation, the Bank has

made significant inroads into the banking consortia of a number of leading Indian corporates

including multinationals, companies from the domestic business houses and prime public sector

companies. It is recognized as a leading provider of cash management and transactional banking

solutions to corporate customers, mutual funds, stock exchange members and banks.

(ii) Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range of financial

products and banking services, giving the customer a one-stop window for all his/her banking

requirements. The products are backed by world-class service and delivered to the customers through

the growing branch network, as well as through alternative delivery channels like ATMs, Phone

Banking, Net Banking and Mobile Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the

Investment Advisory Services programs have been designed keeping in mind needs of customers

who seek distinct financial solutions, information and advice on various investment avenues. The

Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable

securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository

Participant (DP) services for retail customers, providing customers the facility to hold their

investments in electronic form.

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HDFC Bank was the first bank in India to launch an International Debit Card in association with

VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank launched its

credit card business in late 2001. By September 30, 2005, the bank had a total card base (debit and

credit cards) of 5.2 million cards. The Bank is also one of the leading players in the "merchant

acquiring" business with over 50,000 Point-of-sale (POS) terminals for debit / credit cards

acceptance at merchant establishments.

(iii)Treasury

Within this business, the bank has three main product areas - Foreign Exchange and Derivatives,

Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the

financial markets in India, corporate need more sophisticated risk management information, advice

and product structures. These and fine pricing on various treasury products are provided through the

bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold

25% of its deposits in government securities. The Treasury business is responsible for managing the

returns and market risk on this investment portfolio.

The following tables summarizes the products and services and customer segments offered by HDFC

Bank:.

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Table 1.1: Personal banking

Loan ProductDeposit Product

Investment &

Insurance

Auto Loan

Loan Against Security

Loan Against Property

Personal loan

Credit card

2-wheeler loan

Commercial vehicles finance

Home loans

Retail business banking

Tractor loan

Working Capital Finance

Construction Equipment Finance

Health Care Finance

Education Loan

Gold Loan

Saving a/c

Current a/c

Fixed deposit

Demat a/c

Safe Deposit

Lockers

Mutual Fund

Bonds

Knowledge

Centre

Insurance

General and

Health

Insurance

Equity and

Derivatives

Mudra Gold

Bar

Cards Payment Services Access To Bank

Credit Card

Debit Card

Prepaid Card

--------------------------------

Forex Services

--------------------------------

Product & Services

Trade Services

Forex service Branch Locater

RBI Guidelines

NetSafe

Merchant

Prepaid Refill

Billpay

Visa Billpay

InstaPay

DirectPay

VisaMoney

Transfer

eMonies

Electronic Funds

Transfer

Online Paymentof Direct Tax

NetBanking

OneView

InstaAlertMobileBanking

ATM

Phone Banking

Email

Statements

Branch

Network

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Table 1.2: Wholesale banking

Corporate Small and Medium

Enterprises

Government

Sector

Financial

Institutions and

Trusts

Large Corporates

Funded Services

Non Funded Services

Value Added Services

Internet Banking

Supply Chain Partners Dealer Financing

Vendor Financing

Agricultural Lending

Funded Services

Non Funded

Services

Specialized

Services

Value added

services

Internet Banking

Tax Collection

E- Ticketing

Booking of

L/Cs

Collection of

Stamp Duty

Disbursement

of Pension Electronic

Collection of

fees

Collection of

property tax

Financial

Institutions

Mutual Funds

Stock Brokers

Insurance

Companies

Commodities

Business Trusts

Source : http://www.hdfcbank.com/wholesale/prd_glance.htm

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Table 1.3: NRI services

Accounts & Deposits Remittances

Rupee Saving a/c

Rupee Current a/c Rupee Fixed Deposits

Foreign Currency Deposits

Accounts for Returning

Indians

North America

UK Europe

South East Asia

Middle East

Africa

Others

Quick remit

India Link

Cheque Lock Box

Telegraphic/ Wire Transfer

Funds Transfer Cheques/DDs/TCs

Investment & Insurances Loans

Mutual Funds

Private Banking

Portfolio Investment

Scheme

Home Loans

Loans Against Securities

Loans Against Deposits

Gold Credit Card

Payment Services

Access To Bank

Net Safe

Bill Pay

Insta Pay

Direct Pay

Visa Money

Online Donation

Net Banking

One View

Insta Alert

ATM

Phone Banking

Email Statements

Branch Network

Source: http://www.hdfcbank.com/nri/prd_glance.htm

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BUSINESS STRATEGY

HDFC BANK mission is to be "a World Class Indian Bank", benchmarking themselves against

international standards and best practices in terms of product offerings, technology, service levels,

risk management and audit & compliance. The objective is to build sound customer franchises across

distinct businesses so as to be a preferred provider of banking services for target retail and wholesale

customer segments, and to achieve a healthy growth in profitability, consistent with the Bank's risk

appetite. Bank is committed to do this while ensuring the highest levels of ethical standards,

professional integrity, corporate governance and regulatory compliance. Continue to develop new

product and technology is the main business strategy of the bank. Maintain good relation with the

customers is the main and prime objective of the bank.

HDFC BANK business strategy emphasizes the following:

Increase market share in Indias expanding banking and financial services industry by

following a disciplined growth strategy focusing on quality and not on quantity and

delivering high quality customer service.

Leverage our technology platform and open scale able systems to deliver more

products to more customers and to control operating costs.

Maintain current high standards for asset quality through disciplined credit risk

management.

Develop innovative products and services that attract the targeted customers and

address inefficiencies in the Indian financial sector.

Continue to develop products and services that reduce banks cost of funds.

Focus on high earnings growth with low volatility.

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RECENT DEVELOPMENT

The Reserve Bank of India had approved the scheme of amalgamation of Centurion Bank of Punjab

Ltd. with HDFC Bank Ltd. with effect from May 23, 2008. All the branches of Centurion Bank of

Punjab will function as branches of HDFC Bank with effect from May 23, 2008. With RBIs

approval, all requisite statutory and regulatory approvals for the merger have been obtained.

The combined entity would have a nationwide network of 1167 branches; a strong deposit base

of around Rs.1,22,000 crores and net advances of around Rs.89,000 crores. The balance sheet size

of the combined entity would be over Rs.1, 63,000 crores.

On March 27, 2008, the shareholders of the Bank accorded their consent to a scheme of

amalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited. The shareholders of

the Bank approved the issuance of one equity share of Rs.10/- each of HDFC Bank Limited for every

29 equity shares of Re. 1/- each held in Centurion Bank of Punjab Limited. This is subject to receipt

of Approvals from the Reserve Bank of India, stock exchanges and other requisite statutory and

regulatory authorities. The shareholders also accorded their consent to issue equity shares and/or

warrants convertible into equity shares at the rate of Rs.1,530.13 each to HDFC Limited and/or

other promoter group companies on preferential basis, subject to final regulatory approvals in this

regard. The Shareholders of the Bank have also approved an increase in the authorized capitalfrom Rs.450 crores to Rs.550 crores.

Promoted in 1995 by Housing Development Finance Corporation (HDFC), India's leading housing

finance company, HDFC Bank is one of India's premier banks providing a wide range of financial

products and services to its over 11 million customers across hundreds of Indian cities using multiple

distribution channels including a pan-India network of branches, ATMs, phone banking, net banking

and mobile banking. Within a relatively short span of time, the bank has emerged as a leading player

in retail banking, wholesale banking, and treasury operations, its three principal business segments.

The bank's competitive strength clearly lies in the use of technology and the ability to deliver world-

class service with rapid response time. Over the last 13 years, the bank has successfully gained

market share in its target customer franchises while maintaining healthy profitability and asset

quality. As on March 31, 2008, the Bank had a network of 761 branches and 1,977 ATMs in 327

cities. For the year ended March 31, 2008, the Bank reported a net profit of INR 15.90 billion

(Rs.1590.2crore), up 39.3%, over the corresponding year ended March 31, 2007. As of March 31,

2008 total deposits were INR 1007.69 billion, (Rs.100,769 crore) up 47.5% over the corresponding

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year ended March 31, 2007. Total balance sheet size too grew by 46.0% to INR 1,331.77 billion

(133177 crore). Leading Indian and international Publications have recognized the bank for its

performance and quality.

Centurion Bank of Punjab is one of the leading new generation private sector banks in India. The

bank serves individual consumers, small and medium businesses and large corporations with a full

range of financial products and services for investing, lending and advice on financial planning. The

bank offers its customers an array of wealth management products such as mutual funds, life and

general insurance and has established a leadership 'position'. The bank is also a strong player in

foreign exchange services, personal loans, mortgages and agricultural loans. Additionally the bank

offers a full suite of NRI banking products to Overseas Indians. On 29th August 2007, Centurion

Bank of Punjab merged with Lord Krishna Bank (LKB), post obtaining all requisite statutory and

regulatory approvals. This merger has further strengthened the geographical reach of the Bank in

major towns and cities across the country, especially in the State of Kerala, in addition to its

existing dominance in the northern part of the country. Centurion Bank of Punjab now

operates on a strong nationwide franchise of 404 branches and 452 ATMs in 190 locations across

the country, supported by employee base of over 7,500 employees. In addition to being listed

on the major Indian stock exchanges, the Banks shares are also listed on the Luxembourg

Stock Exchange.

AWARDS AND ACHIEVEMENTS

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". We

realized that only a single-minded focus on product quality and service excellence would help us get

there. Today, we are proud to say that we are well on our way towards that goal.

It is extremely gratifying that our efforts towards providing customer convenience have been

appreciated both nationally and internationally.

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Awards In 2009

Table 1.4: Awards in 2009

Euro money Awards 2009 'Best Bank in India'

Economic Times Brand

Equity & Nielsen Research annual survey

2009

Most Trusted Brand - Runner Up

Asia Money 2009 Awards 'Best Domestic Bank in India'

IBA Banking Technology Awards 2009 'Best IT Governance Award - Runner up'

Global Finance Award 'Best Trade Finance Bank in India for 2009

IDRBT Banking Technology Excellence

Award 2008'Best IT Governance and Value Delivery'

Asian Banker Excellence in Retail

Financial Services

'Asian Banker Best Retail Bank in India Award

2009 '

Source:http://www.hdfcbank.com/aboutus/awards/default.htm

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Awards In 2008

Table 1.5: Awards in 2008

Finance Asia Country Awards for

Achievement 2008'Best Bank and Best Cash Management Bank'

CNN-IBN 'Indian of the Year (Business)'

Nasscom IT User Award 2008 'Best IT Adoption in the Banking Sector'

Business India 'Best Bank 2008'

Forbes Asia Fab 50 companies in Asia Pacific

Asian Banker Excellence in Retail

Financial ServicesBest Retail Bank 2008

Asia moneyBest local Cash Management Bank Award voted by

Corporates

Microsoft & Indian Express Group Security Strategist Award 2008

World Trade Center Award of honourFor outstanding contribution to international trade

services.

Business Today-Monitor Group survey One of India's "Most Innovative Companies"

Financial Express-Ernst & Young

AwardBest Bank Award in the Private Sector category

Global HR Excellence Awards - Asia

Pacific HRM Congress:

'Employer Brand of the Year 2007 -2008' Award - First

Runner up, & many more

Business Today 'Best Bank' Award

Source:http://www.hdfcbank.com/aboutus/awards/default.htm

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QUALITY POLICY OF HDFC BANK

Security: The bank provides long term financial security to their policy. The bank

does this by offering life insurance and pension products.

Trust: The bank appreciates the trust placed by their policy holders in the bank. Hence, it will

aim to manage their investments very carefully and live up to this trust.

Innovation: Recognizing the different needs of our customers, the bank offers a range of

innovative products to meet these needs.

Integrity

Customer centric

People care one for all and all for one

Team work

Joy and simplicity.

NETBANKING SERVICE AT HDFC BANK

Net banking is HDFC Bank's Internet Banking service. It provides up-to-the-second account

information. Net banking lets the customer manage his/her account from the comfort of his/her

mouse - anytime, anywhere.Net Banking services provides access to account information, products

and other services (including transactions of non-financial and financial in nature) as advised by the

Bank from time to time to the customers through the website of the Bank. Net Banking Services also

include the services for Demat account, Credit Cards and loan on the website of the Bank.

The HDFC Bank web site (www.hdfcbank.com) also features two versions of a demo facility - one

"interactive" and the other "guided" - making it possible for even Internet illiterates to get

comfortable with its services.

On the downside, however, 'registration' for the service involves downloading of a form that needs to

be posted/delivered to any of its branches - not exactly "web savvy" as we would call it. Also, the

form itself requires Adobe Acrobat Reader to be installed and the file size will exceed 5.5 MB,

which translates roughly into an hour or more of on-line time. Its 3-question FAQ page also assumes

a high level of computer knowledge from users ... not consistent with the rest of the website.

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Net Banking service provides a host of features at the finger-tips:

View Account Balances & Statements

Transfer Funds between accounts

Create Fixed Deposits Online

Request a Demand Draft

Pay Bills

Order a Cheque Book

Request Stop Payment on a Cheque

SERVICES OFFERED UNDER NET BANKING SERVICE PROVIDED

BY HDFC BANK

HDFC Bank Savings and Current account holders can access their account through Net Banking.

Currently, Net Banking service is offered to the HDFC Bank customers free with all accounts.

However, all minimum balance/deposit amount requirements of the relevant accounts will need to

be honored. No separate fee is charged to access this service.

Currently, one can do any of the following:

Queries -

Check your Balance

See your Statement

Inquire about cheque status

Ask for a Statement

Ask for a Cheque Book

Inquire about your Fixed Deposit

Inquire about your TDS details

See your Demat Account

Update your profile

View HDFC bank Credit card bills

View your Mutual funds portfolio

Transactions -

Stop a Cheque

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Pay your Bills

Ask for a Demand Draft

Transfer funds between your accounts

Transfer funds to a third party

Request for a new Fixed Deposit

Shop Online

Pay HDFC Bank Credit Card Dues

Buy and sell Mutual Funds.

SECURITY AND SAFETY OF TRANSACTIONS ON NET BANKING

The customer can be assured of complete privacy when you use HDFC Bank's Net Banking facility.

The bank has built several checks to safeguard the Net Banking transactions. Before the user gain

access to his/her account, he/she will be asked to enter his/her unique customer ID and IPIN

(password) to verify the identity. To maximize the security and confidentiality of the transactions,

ones password is not accessible to anyone, not even bank employees.

To ensure the security of the transactions, the bank uses a technology called Secured Socket Layer

(SSL), which involves scrambling of the information between the customer and the Bank. If an

unauthorized user tries to access your account by keying in various combinations while trying to

guess your password, your account will automatically get locked. Moreover, when the user log-in

to Net Banking, the last date and time of log-in will be displayed so that the user can make sure that

nobody has accessed his/her account.

In addition to these online security features, have been placed under the supervision of a dedicated

team to monitor the access to the web server and to prevent unauthorized access. These features

work together to maximize the security of your banking transactions.

HDFC bank has implemented a new security solution for its customers - secure access as security

of the customer is banks top priority, the bank has initiated the secure access solution to protect the

customers from fraudsters and hackers.

Currently following transactions are covered under secure access

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Transfer from one HDFC bank account to other HDFC bank account

Transfer from HDFC bank account to any other bank's account

Visa money transfer

Third party demand draft through net banking.

Internet banking has been exploited by hackers and fraudsters to deceive the bank's customer and

commit frauds. While the bank has best-of-the-breed solutions, processes and people deployed to

extend secure banking to its customers, it is important for our customers to know that "security is

incomplete without u". Customers need to follow secure computing guidelines to avert any frauds

or security breaches to their accounts, as keys to the internet banking accounts are held by

respective account owners in the form of customer IDs and internet banking passwords (I PIN).

Here are some internet banking security tips provided by HDFC bank:

1. Keep your customer ID and IPIN confidential and do not disclose it to anybody.

2. Change your IPIN as soon as you receive it by logging into your net banking account.

Memorize your IPIN; do not write it down anywhere.

3. Refer "protect your computer accounts with strong passwords" section under computer

security tips.

4. Avoid accessing internet banking from shared computer networks such as cyber cafes.

5. Do not click on links in the emails or sites other than www.hdfcbank.com to access your net

banking webpage.

6. Always visit the HDFC bank's net banking site through HDFC bank's home page by typing

the bank's website address (www.hdfcbank.com) on to the browser's address bar. Users are

encouraged to add the bank's url to favorites or bookmark in the user computer browser.

7. Always verify the authenticity of the bank's net banking webpage by checking its url as

"https://netbanking.hdfcbank.com" and the pad lock symbol at the bottom corner of the

browser before putting in your customer ID and IPIN.

8. If your customer id and Ipin appear automatically on the login page of net banking

webpage, you should disable "auto complete" feature on your browser. To disable auto

complete feature:

a. Open internet explorer, click on tools=> internet options=> content.

b. Click on "auto complete", under "personal information"

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c. Uncheck "user names and passwords on forms", click on "clear passwords"

d. Click "ok"

9. Use virtual keyboard feature while logging into your internet banking account.

10. Do cross check your last login information available in net banking upon every login to

ascertain your last login and monitor any unauthorized logins.

11. Always type your confidential account information. Do not copy paste it.

12. Monitor your transactions regularly.

13. Use HDFC bank's "Insta Alerts" service.

14. Always logout when you exit net banking. Do not directly close the browser.

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CHAPTER 4

DATA ANALYSIS ANDINTERPRETATION

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DATA ANALYSIS AND INTERPRETATION

Statement 4.a Demographic Profile of the Respondents

Table 4.a Demographic Profile of the Respondents

38

Demographics

Number of

Respondents

Percentage Of

Respondents

Age:

Below 20 yrs

20 35 yrs

35 50 yrs

50 65 yrs

65 yrs and above

3

99

120

51

27

1 %

33 %

40 %

17 %

9 %

TOTAL 300 100 %Qualification:

Undergraduate

Graduate

Post Graduate

15

195

90

5 %

65 %

30 %

TOTAL 300 100 %

Occupation:

Businessman

Housewife

Self Employed

Service

Student

Professional

96

21

51

81

12

39

32 %

7 %

17 %

27 %

4 %

13 %

TOTAL 300 100 %

Annual Income:

Less than Rs 2 Lakhs

Rs. 2 6 Lakhs

Rs. 6 10 Lakhs

Rs. 10 15 Lakhs

Rs. 15 20 Lakhs

Rs. 20 Lakhs and above

36

81

117

51

15

0

12 %

27 %

39 %

17 %

5 %

0 %

TOTAL 300 100 %


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Analysis and interpretation:

From the data collected it was found majority of respondents that is 40% belonged to the age of 35 to

50 years, followed by the age group of 20 to 35 years. It was found that the majority of the

respondents were graduates. It was found that the majority of the respondents were from the

business class followed by the service class and self employed people. It was found that the majority

of the respondents fell between the income groups of Rs 6 to Rs 10 lakhs, followed by income group

between Rs 2 to Rs 6 lakhs.

Thus it can be concluded that the majority of the respondents were knowledgeable and were well

informed about the banking services.

Statement 1: Time period since the HDFC Banks services are being availed

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Table 4.1 Time period since the HDFC Banks services are being availed

Time Period Number of respondents Percentage of respondents

Less Than 2 years

2 5 years

5 10 years

More Than 10 years

27

54

93

126

9 %

18 %

31 %

42 %

Total 300 100 %

Graph 4.1 Time period since the HDFC Banks services are being availed


From the data collected, it can be that the majority of the respondents that is 42% of the respondents

have been HDFC Banks customer for more than 10 years, followed by 5 to 10 years with 31% of

respondents.

It can be concluded that the majority of the respondents are loyal towards HDFC Bank for more than

10 years.

Statement 2: Products and services of HDFC Bank availed by the customers

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Table 4.2: Products and services of HDFC Bank availed by the customers

Products and services Number of respondents Percentage of respondents

Loans

Deposit Accounts

Credit Cards

Debit Cards

Forex Services

ATM

NRI Services

69

87

36

27

30

33

18

23 %

29 %

12 %

9 %

10 %

11 %

6 %

Total 300 100 %

Graph 4.2: Products and services of HDFC Bank availed by the customers

Analysis and interpretation

It was found that, majority of the respondents i,e., 29% availed deposit accounts, followed by loans,

credit cards, ATMs and forex services with 23%, 12%, 11% and 10% respectively. It can be

inferred that that majority of the respondents availed the deposit accounts among the various

products and services offered by the HDFC Bank.

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Statement 3: Perception about the products and services offered by HDFC Bank

Table 4.3: Perception about the products and services offered by HDFC Bank

Perception Number of respondents Percentage of respondents

Lucrative

Non lucrative

Cant say

240

15

45

80 %

5 %

15 %

Total 300 100 %

Graph 4.3: Perception about the products and services offered by HDFC Bank

Analysis and interpretation

From the data collected, it was found that the majority of the respondents that is 85% said that the

products and services offered by HDFC Bank were lucrative. While just 5% of the respondents said

that the products and services offered were non lucrative and the remaining 15% were not able form

any opinion.

It can be inferred that the majority of the felt that the products and services offered by HDFC Bank

were lucrative.

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Statement 4: Ways to access to HDFC Bank

Table 4.4: Ways to access to HDFC Bank

Ways Number of Respondents Percentage of Respondents

Net Banking

Phone Banking

One View

ATM

Branch Network

Email Statement

Insta Alert

69

36

9

36

99

45

3

23%

12 %

03 %

13 %

33 %

15 %

01%

Total 300 100 %

Graph 4.4: Ways to access to HDFC Bank


It was found from the data collected that 33% of the respondents accessed the bank through Branch

network. About 23% of the respondents accessed the bank through net banking followed by email

statements with about 15%. Marginally 1% and 3% of the respondents used Insta Alert and one

view to access the bank. It was inferred that majority of the respondents accessed the bank through

branch network.

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Statement 5: Awareness regarding Net Banking Service provided by HDFC Bank

Table 4.5:Awareness regarding Net Banking Service provided by HDFC Bank

Awareness Number of respondents Percentage of respondents

Yes

No

288

12

96 %

4 %

Total 300 100 %

Graph 4.5:Awareness regarding Net Banking Service provided by HDFC Bank


From the data collected it was found that majority of the respondents that is 96% were aware of the

net banking service provided by HDFC Bank while just 4% of the respondents were not aware of the

same service. It was concluded that majority of the respondents are aware of the net banking service

in HDFC bank.

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Statement 6: Accessibility of Net Banking Facility provided by HDFC Bank

Table 4.6: Accessibility of Net Banking Facility provided by HDFC Bank

Accessibility Number of respondents Percentage of respondents

Yes

No

243

57

81 %

19 %Total 300 100 %

Graph 4.6: Accessibility of Net Banking Facility provided by HDFC Bank


From the data collected it was found that about 81% of the respondents had accessed the net banking

service provided by the HDFC Bank while 19% of the respondents said that they had not accessedthe same.

It can be inferred that the majority of the respondents had availed the net banking service.

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Statement 7:Net Banking services of HDFC Bank availed

Table 4.7: Net Banking services of HDFC Bank availed

ServicesNumber of

respondents

Percentage of

respondents

View accounts balances & statements

Transfer funds between accounts

Create Fixed Deposit online

Request a demand draft

Pay bills

Order a cheque book

Request stop payment on a cheque

90

66

18

9

60

33

24

30%

22%

6 %

3 %

20%

11 %

8 %

Total 300 100 %

Graph 4.7: Net Banking services of HDFC Bank availed


It was found that the majority of the respondents i.e., 30% of the respondents used the net banking

service for viewing accounts and balances, followed by 22% and 20% of the respondents who

availed the same for transferring the funds between accounts and for paying the bills respectively.

Marginally 3% of the respondents used the same service to request a demand draft. It can be inferred

that the majority of the respondents used the net banking service provided by HDFC Bank to view

their accounts and balances.

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Statement 8: Frequency of using the Net Banking service in a month

Table 4.8: Frequency of using the Net Banking service in a month

Frequency Number of respondents Percentage of respondents

Less than once

1 to 3 times

3 to 8 times

8 to 15 times

More than 15 times

105

144

36

15

0

35 %

48 %

12%

5 %

0 %

Total 300 100 %

Graph 4.8: Frequency of using the Net Banking service in a month


It was found that the majority of the respondents i.e., 48 % used the Net Banking service one to three

times in a month while 35 % said that they used the same service less than once in a month. None ofthe respondents said that they availed the same facility more than 15 times in a month.It can be

inferred that the majority of the respondents availed the Net Banking service one to three times in a

month.

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Statement 9: Frequency of visiting the HDFC Bank branch

Table 4.9: Frequency of visiting the HDFC Bank branch

Frequency Number of respondents Percentage of respondents

Everyday

Alternate days

Once in a week

Twice in a month

Thrice in a month

Twice in a week

Once in a week

63

78

54

27

15

42

21

21 %

26 %

18 %

9 %

5 %

14 %

7 %

Total 300 100 %

Graph 4.9: Frequency of visiting the HDFC Bank branch

Analysis and interpretation:It was found that the majority of the respondents i.e., 26% said that

they visited the bank branch every alternate day, followed by 21% of the respondents who visited the

bank everyday. Only 5% of the respondents visited the bank branch thrice in a month.

It can be inferred that the majority of the respondents said that they visited the bank branch every

alternate day.

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Statement 10: The main reason for which the bank branch is typically visited

Table 4.10 : The main reason for which the bank branch is typically visited

ReasonsNumber of

respondents

Percentage of

respondents

To make a deposit

To get a advice for investment purpose

To inquire about a balance

To withdraw a cheque

To order a cheque book

To transfer funds between accounts

93

39

21

71

45

33

31 %

13 %

7 %

23 %

15 %

11 %

Total 300 100 %

Graph 4.10 : The main reason for which the bank branch is typically visited

Interpretation:

It was found that the majority of the respondents i.e., 31% said that the main reason of visiting the

bank is to make a deposit, followed by 23% who said that they visited the bank branch typically to

withdraw a cheque. Of the total only 7% and 11% of the respondents visited the bank to inquire

about a balance and to transfer funds between accounts respectively.

It can be inferred that the majority of the respondents said that the main reason of visiting the bank is

to make a deposit.

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Statement 11: Agreement regarding Net Banking service being better than traditional banking

Table 4.11: Agreement regarding Net Banking service being better than traditional

banking

Agreement Number of respondents Percentage of respondents

Yes

No

192

108

64 %

36 %

Total 300 100 %

Graph 4.11 Agreement regarding Net Banking service being better than traditional banking.


Of the data collected it was found that the majority of the respondents i.e., 64% respondents agreed

that net banking is better than the traditional banking while 36% of the respondents disagreed with

the statement.

It can be inferred that the majority of the respondents felt that the net banking service was better than

traditional banking.

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12. Rate the following factors in the order of your satisfaction

Mark 5 if you are highly satisfied

Mark 4 if you are satisfied

Mark 3 if you are neither satisfied nor dissatisfied

Mark 2 if you are Dissatisfied

Mark 1 if you are highly dissatisfied

Graph 4.12.1 Convenience

Interpretation: Most of the respondents are satisfied with the convenience in using Net banking

services offered by HDFC bank. It is proved from the above fig; showing that 224 respondents are

satisfied with the above attribute whereas, 36 respondents are dissatisfied. Remaining 40 respondents

are neither satisfied nor dissatisfied with the convenience.

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Graph 4.12.2 Low cost

0

20

40

60

80

100

120

140

Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied

43

81

122

37

17

Low cost

Interpretation: Most of the respondents are neither satisfied nor dissatisfied with the Low cost in

using Net banking services offered by HDFC bank. It is proved from the above fig; showing that 122

respondents are neither satisfied nor dissatisfied with the above attribute whereas, 43 respondents areHighly satisfied ,81 respondents are satisfied. And remaining 40 respondents are neither satisfied nor

dissatisfied with the Low cost.

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Graph 4.12.3 Quick service

Interpretation: Most of the respondents are satisfied with the service lead time in using Net banking

services offered by HDFC bank. It is proved from the above fig; showing that 190respondents are

satisfied with the above attribute whereas, 54respondents are dissatisfied. Remaining 56 respondents

are neither satisfied nor dissatisfied with the Service Lead time.

53

0

20

40

60

80

100

120

Highly satisfied Satisfied Neutral Dissatisfied Highly

dissatisfied

117

73

56

32

22

Quick service


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Graph 4.12.4 Maintenance

0

20

40

60

80

100

120


dissatisfied

69

117

75

33

6

Maintenance

Interpretation: Most of the respondents are satisfied with the Maintenance in using Net banking



are neither satisfied nor dissatisfied with the Maintenance.

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Graph 4.12.5 Safety

0

10

20

30

40

50

60

70

80

90

100


dissatisfied

43

79

94

57

27

Safety

Interpretation: Most of the respondents are neither satisfied nor dissatisfied with the Safety in using

Net banking services offered by HDFC bank. It is proved from the above fig; showing that 94

respondents are neither satisfied nor dissatisfied with the above attribute whereas, 43 respondents are

Highly satisfied ,79 respondents are satisfied. And remaining 84 respondents are neither satisfied nor

dissatisfied with the Safety.

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Graph 4.12.6 User friendly

0

10

20

30

40

50

60

70

80

90

100


dissatisfied

54

96

78

41

31

User friendly

Interpretation: Most of the respondents are satisfied with the User friendly in using Net banking



are neither satisfied nor dissatisfied with the User friendly.

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Graph 4.12.7 Logging in to your account

0

10

20

30

40

50

60

70

80

90

100


dissatisfied

37

64

94

68

37

Logging in to your account

Interpretation: : Most of the respondents are neither satisfied nor dissatisfied with the Logging in to

your account in using Net banking services offered by HDFC bank. It is proved from the above fig;

showing that 94 respondents are neither satisfied nor dissatisfied with the above attribute whereas,

37respondents are Highly satisfied ,64 respondents are satisfied. And remaining 106 respondents are

neither satisfied nor dissatisfied with the Logging in to your account.

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Graph 4.12.8 Making transactions

0

10

20

30

40

50

60

70

80

90

Highly satisfied Satisfied Neutral Dissatisfied Highlydissatisfied

41

87

76

59

37

Making transactions

Interpretation: Most of the respondents are satisfied with the Making transactions in using Net

banking services offered by HDFC bank. It is proved from the above fig; showing that 128

respondents are satisfied with the above attribute whereas, 96 respondents are dissatisfied.

Remaining 76 respondents are neither satisfied nor dissatisfied with the Making transactions.

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Graph 4.12.9 Unable to understand webpages

0

10

20

30

40

50

60

70

80

90


dissatisfied

41

74

55

83

47

Unable to understand webpages

Interpretation: Most of the respondents are dissatisfied with the understanding webpages in using

Net banking services offered by HDFC bank. It is proved from the above fig; showing that 130

respondents are dissatisfied with the above attribute whereas, 125 respondents are satisfied.

Remaining 55 respondents are neither satisfied nor dissatisfied with the understanding webpages.

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Graph 4.12.10 Changing the IPIN and Password

0

10

20

30

40

50

60

70

80

90

Highly satisfied Satisfied Neutral Dissatisfied Highlydissatisfied

31

54

64

82

69

changing the IPIN and Password

Interpretation: Most of the respondents are dissatisfied with the Changing the IPIN and password

in using Net banking services offered by HDFC bank. It is proved from the above fig; showing that

151 respondents are dissatisfied with the above attribute whereas, 85 respondents are satisfied.Remaining 63 respondents are neither satisfied nor dissatisfied with the Changing the IPIN and

password.

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